The Dow Jones Index closed trading on Friday with its first weekly loss in four weeks, underlined by renewed trade tariff war fears. However, the set up has since changed after US President Donald Trump suspended the 50% tariffs against imports from the EU until at least July 9. Therefore, traders will be back with renewed confidence that will likely ensure that the index ends the month on a winning note.
US Futures were up in the early hours on Tuesday, setting the tone for the rest of the market when the opening bells ring. The S&P 500 Index Futures were up by 1.1%, while the NASDAQ Futures had gained 1.5% at the time of writing, mirroring the upbeat performance of European equities. In addition, the CNN Fear and Greed Index, which gauges investor sentiment, was at 64 on a scale of 100, indicating a “Greed” sentiment. This set up will likely see the Dow Jones Index register gains in the near-term.
The Dow Jones Index’s previous heaviest-weighted stock, UnitedHealth Group (NYSE: UNH) faces tumultuous times. America’s largest health insurer faces rising pressure from a blend of regulatory scrutiny and three CEO changes in under six months. Elsewhere, Apple (NASDAQ: AAPL) could be limited by the FUD sentiment created by President Trump’s threat to impose 25% tariffs on iPhone imports. That said, multiple stocks in the Index will likely be bumped up should Nvidia (NASDAQ: NVDA) earnings beat forecasts .
Dow Jones Index Prediction
The Dow Jones Index pivot mark is at 41,590 points and the upside momentum looks likely to prevail. It will likely meet initial resistance at 41,975. However, action will go above that level if buyers extend their control. That could clear the path to test the next barrier at 42,327.
Alternatively, the index could break below 41,590 points, inviting the sellers to take control. If that happens, the first support will likely be at 41,275, below which the upside narrative will be invalid. In addition, an extended control by the sellers could take the action lower and test 40,920 points.
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Dow Jones Industrial Average Index
The DJIA is showing signs of consolidation after a strong rebound, with the ROC suggesting weakening momentum. Traders might watch for support near 41,000 or a break below to confirm further downside.
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